BSETCFC Finance LtdHighNeutral
Announced Wed, 6 Aug · 16:36 IST

Un-audited Financial Results for the quarter ended 30th June, 2025

Revenue Growth 20pctPat Growth 25pctResults View source PDF

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AI summary

TCFC Finance, an NBFC and investment company, reported a strong Q1 FY26 with total income of ₹658.01 lakhs and profit after tax of ₹174.11 lakhs, reversing last year's same-quarter loss of ₹303.55 lakhs. The recovery was mainly driven by net gain on fair value changes of ₹604.55 lakhs (vs a loss of ₹416.63 lakhs in Q1 FY25). Interest income was ₹48.29 lakhs and dividend income ₹5.74 lakhs. Tax expense was unusually heavy at ₹444.60 lakhs (effective rate ~72%), pulling down the bottom line despite strong operating performance. EPS stood at ₹1.66 vs negative ₹2.90 a year ago. The Board also approved a reduction of share capital and re-appointed Mrs. Tania Deol as MD & CEO for another 5-year term.

Likely market impact

Short-term shareholders benefit from a sharp profit swing, but earnings are heavily dependent on volatile fair value movements rather than steady interest income, so quality of earnings is weak. The unusually high current tax provision of ₹300 lakhs in a single quarter is a watch item. The proposed share capital reduction is a significant capital action needing shareholder approval at the upcoming AGM.